Rajasthan data centre policy to attract Rs 20k cr investment in 5 years: CM

Rajasthan Chief Minister Bhajanlal Sharma on Saturday said that Rajasthan Data Centre Policy 2025 will bring an investment of about Rs 20,000 crore to the state in the next five years.

He said that the policy aims to encourage the establishment of data centres in the private sector in Rajasthan. This policy was announced in the state budget 2024-25, he added.

In a statement, he said that the goal of Rajasthan Data Centre Policy-2025 is to make Rajasthan a major hub of the data centre sector by developing a world-class data centre ecosystem in the state. This policy will help in setting guidelines to ensure high standards of data management, performance and security in the state.

Under this policy, many provisions have been made to encourage the data center sector, which include annual asset creation incentive of Rs 10-20 crore for 10 years, 25 per cent additional sunrise incentive to the first 3 data centers investing more than Rs 100 crore, 5 per cent interest subsidy for 5 years, 100 per cent exemption in banking, transmission and wheeling charges, flexible payment facility related to land, exemption in stamp duty, land conversion and electricity charges, and exemption from external development fee up to Rs 10 crore.

In the new policy, special attention has also been given to environmental protection and increasing the efficiency of personnel. Under this, 50 percent reimbursement of the amount spent to improve the efficiency of data center employees, 50 per cent reimbursement up to Rs 12.5 crore as Green Solution Incentive, 50 per cent assistance up to Rs 1 crore on GI tag, patent, copyright and trademark registration, exemption in building bylaws and provision of continuous power supply are included.

This policy includes new initiatives like recognizing data centres as essential services and making special provisions in building bylaws. Data centres in the country are mainly concentrated in big cities like Mumbai, Chennai, Delhi, Bangalore, Pune, Hyderabad and Kolkata. Rajasthan also has a lot of potential to set up green field data centres due to abundant space available, renewable energy sources and visionary policy of the state government.

He said that after the implementation of this policy, an investment of about Rs 20,000 crore is expected in the state in the next five years. Along with this, new employment opportunities will also be created for the youth in the field of information technology.